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67 pct of Egypt employees expect a raise in the next 12 months, says poll

CAIRO: Forty-three percent of employees in Egypt have been unhappy with their last pay rise, and 67 percent expect to receive a raise in the coming year, a recent poll revealed. The latest MENA Salary Survey conducted by Bayt.com, the Middle East’s number one jobsite, and YouGov, also showed that 29 percent of respondents have …

CAIRO: Forty-three percent of employees in Egypt have been unhappy with their last pay rise, and 67 percent expect to receive a raise in the coming year, a recent poll revealed.

The latest MENA Salary Survey conducted by Bayt.com, the Middle East’s number one jobsite, and YouGov, also showed that 29 percent of respondents have spent 4-6 years in their current industry, with 27 percent having worked for their current employer for 4-7 years.

Four out of 10 have between one and five people reporting directly to them, with a collective 68 percent stating that they are midway in terms of seniority or at a fairly senior level, but not yet at the top.

Over the past five years, 36 percent have held two jobs; 28 percent have held one job, while the remainder have held three or more.

In Egypt, the preferred pay structure is split evenly between entirely fixed-pay and a partially fixed-pay with variables for commission and incentives, with popular incentives including those that are performance-based, and professional training and development courses.

Salary packages primarily consist of basic salary only, and six out of 10 respondents are currently moderately satisfied with their salary.

Salary comparisons and expectations

Six out of ten respondents in Egypt state that their current compensation is lower than that offered by other companies in the same industry. Just over a quarter claim not to have received a raise in the last 12 months. Those who did receive a raise are predominantly unhappy with what they received; collectively, 43 percent claim to have been “unhappy” or “very unhappy.”

Cost of living and savings

According to 84 percent of survey respondents, the cost of living in Egypt has increased in the last 12 months (between December 2010 – December 2011), of these 57 percent believe that it has increased by 15 percent or more. Food and beverage is believed to have increased the most, according to six out of ten respondents, followed by rent. A majority 79 percent believe that the cost of living will continue to rise in the coming year. On average, respondents claim that they received a 9.77 percent raise in the past year – while stating that their cost of living increased by an average of 26.12 percent.

A quarter of respondents are able to save more than 15 percent of their monthly salary, though 43 percent have been unable to save anything at all. Only 13 percent manage to repatriate more than 15 percent of their salary.

“The survey’s results suggest that companies are still feeling the effects of the economic downturn, as they are generally not fully catering to the financial expectations of their employees or to their employees’ perceptions of the rising cost of living across the region,” said Suhail Masri, vice president of Sales, Bayt.com.

Perception of salaries in the country

More than half of survey respondents believe that salaries in Egypt are increasing either “marginally” or “moderately.” The most popular reason for this is perceived to be inflation and the rising cost of living, followed by growth in opportunities and economic growth in the respondent’s country of residence. Respondents meanwhile blame the poor economy and employer-friendly laws as being the top reasons for salaries not increasing.

Quality of life

When comparing themselves to other people of a similar generation within Egypt, 44 percent of respondents believe that their quality of life is about average, while 27 percent believe that they are somewhat better off.

To improve their situation, half will look for a better job in the same industry, while more than a third will look for a better job as an expat in a different Middle Eastern country.

Loyalty to employers is directly linked to salary package, according to 31 percent of Egypt respondents. However, 34 percent base their loyalty on opportunities for long-term career progression. Line managers, senior management, colleagues and working environment, daily responsibilities, and training and development opportunities also factor highly. –Daily News Egypt